TRADING conditions for smaller manufacturers have continued to decline, with output, employment and new orders all falling for the second successive quarter, according to the CBI's latest survey.

However, the Engineering Employers' Federation (EEF) Northern director, Alan Hall, said the North-East was continuing to buck the trend and had become resilient to the pressures of the industry.

The CBI's latest quarterly survey found that 34 per cent of smaller manufacturers nationwide have seen new orders fall, compared with only 22 per cent seeing an increase.

A third of smaller manufacturers said their output had fallen during the past three months, while 27 per cent said it had risen, and a quarter said their staff numbers had dropped, against 17 per cent indicating a rise.

Mr Hall said: "Over the last two years, the North-East has been bucking the trends seen in other parts of the UK.

"I also think manufacturing in the North-East has been under relentless pressure over the past ten to 15 years. They have survived the knocks and they have become more resilient."